The Solar Securitization Opportunity

In The Solar Securitization Opportunity, Marathon Capital uses its position in renewables financing to simplify the future of solar securitization
with an overarching goal of exploring how distributed solar financing trends are impacted by its emergence. The White Paper offers a variety of insights,
including the following five key findings:

While securitization offers a compelling value proposition, it is not always the optimal cash equity monetization strategy for all developers.

Reliance on third-party tax equity financing restricts the maturity and advance rate of solar securitizations, affecting virtually all current participants.

The increase in solar securitization yields in early 2016 is primarily due to weakening macro credit conditions but the Nevada net metering decision
may have increased perceived policy risk for solar securitizations.

In the long-term, solar securitizations will generally have a higher cost of capital and lower advance rate than traditional securitized asset classes
even after the asset class develops a proven track record.

However, achievable actions over time should both reduce the current cost of capital and increase the advance rate, making securitizations of distributed
solar assets increasingly efficient.

This Marathon Capital White Paper represents industry information and does not include any recommendations relating to either equity or debt securities.